Road Program Financed With Bonds (2017 LGAA)

Village of Upper Brookville
County: Nassau County
Population: Less than 5,000
Village Hall: (516) 624-7715

Upper Brookville previously delayed rebuilding and resurfacing roads until they were close to the end of their useful life and the only solution was costly reconstruction. In July 2016, the Board of Upper Brookville resolved to (a) repave the rest of the village’s roads at a cost of $2.3 million over two years, and (b) issue 15-year bonds to cover the cost. Issuing bonds would finance the repaving of all needy roads while lowering the annual road expense from $450,000 to $200,000 per year.

The road project is innovative because it combines low cost construction materials with sound road science and abundant bargain rate financing to bring great value to residents. In effect, a municipality can have longer lasting, smoother riding roads and by using readily available financing, lower property taxes at the same time. Great value can be generated in future tax savings by engaging in proactive road maintenance. Roughly $1 spent in time will save $4 later in reconstruction.

Costs included legal fees ($7,500), audited financials ($10,000), financial advisory and placement ($10,000) and rating agency fees ($10,000). All road related expenses will be capitalized with the road cost and financed with the bonds. Bonds will be repaid in 15 years. When the roads wear out in 20 years, the village can finance their reconstruction again with new bonds.

Once the roads are returned to good condition we will plan regular maintenance such as seal coating over the next few years to extend their lifespan. We have also instituted a Garbage Disposal District (GDD) designed to (a) reduce the number of heavy trash trucks that travel the village roads and (b) increase the percentage of smaller, lighter trash trucks to reduce pavement damage.